Robinhood Penny Stocks: What You Need To Know

The rise of the internet has created a plethora of technologies that transform the way we most things in the 21st century, including of course, the way we trade stocks. Gone are the days when you had to dial in an order to a market maker on some trading floor; today it can all be done online, and one of the biggest platforms out there right now is Robinhood. Many traders have warmed up to the platform and so many are doing their research into Robinhood penny stocks. This brings two issues into the equation. The first is the practical way in which Robinhood penny stocks work and second, the alternatives to Robinhood in light of these practicalities.

Robinhood Penny Stocks – How The Platform Works

Robinhood penny stocks is a bit of a misnomer in actual terms because the platform wasn’t, and isn’t based exclusively on penny stocks. As the company has stated on its website, the platform was founded on the premise that a technology-driven brokerage can, and should, be able to operate on significantly lower overheads than your traditional brokerage. Out of this stance, Robinhood has staked its offering on the promise of not charging the traditional fees that come with trading stocks. Nowhere on the company’s website is there a mention of penny stocks; so it begs the question: are there really Robinhood Penny Stocks? The question is really just another way of asking of a day trader: can you in actual fact, trade penny stocks on the platform? The answer to that is ‘not exactly.’

Robin Hood Penny Stocks – Issues We Found

There is anecdotal evidence out there that some users have managed to trade penny stocks on Robinhood . But keep in mind that anecdotal evidence is not ironclad evidence and is subject to all sorts of fluctuations, interpretations, and misunderstandings. For this reason we dug a little deeper and we found open particular issue that makes Robinhood Penny stocks a concern.

The issue has to do with It has to do with fills and trade executions. These are painfully slow and given the inherent practicalities of speed when it comes to penny stocks, this makes the platform somewhat unhelpful to the penny stock day trader. The benefit of lower fees is not compensated for because Robinhood is not a direct access broker. Ultimately this hurts the day trader who needs to enter and exit a position, sometimes in a matter of minutes.

This doesn’t mean that Robin Hood penny stocks are not possible; it just means, given the inherent structural difficulties that a day trader has to be careful when trying to execute penny stock trades on the platform. So what is the alternative to Robinhood Penny Stocks?

The answer to that is quite simple, actually. Penny stocks are tradeable on a large number of platforms outside of disruptive platforms like Robinhood. In a sense, then, the real question is not so much about Robinhood penny stocks; rather its where can you find good penny stock trade ideas in the first place. For that we’ve always advocated leveraging the research and insights of people who dedicated themselves to finding really good penny stocks. The clearest manifestation of this is the penny stocks newsletter and you can kick start your chances of success by finding one and signing up if you haven’t found already. And even if you’ve found newsletter, you can bolster your chances of success by adding another one to your arsenal. Start here.